FHA insured mortgages require mortgage insurance. Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages.
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According to FHA guidelines, borrowers and / or their spouse must qualify according to set debt ratios which are used to determine whether the borrower can reasonable be expected to meet the expenses involved with home ownership.
[ - more on FHA debt to income ratios - ]
FHA will analyze a borrower's past credit performance in determining the loan for approval. A borrower who has made timely payments
serves as a guide and demonstrates their willingness to repay future credit obligations.
[ - more on FHA credit issues - ]
Before you start the loan process, you'll need to have some information at hand for all loan applicants. In addition, you will need to pay for a credit report and appraisal of the property.
[ - more on FHA requirements - ]
What does it take to be eligible to apply for an FHA home loan? FHA requirements include details about income, credit rating and other factors, but before a loan officer looks at any of that information, an applicant has to meet the basics.